Canadian wineries say scrapping provincial trade barriers would add billions to GDP

Advertisement

Advertise with us

HALIFAX - Canada’s wine sector is worth more than $10 billion a year and the industry says a few tweaks — like scrapping domestic trade barriers — could add billions of dollars more to the national economy.

Read this article for free:


or

Already have an account? Log in here »

To continue reading, please subscribe:

Subscribe and receive a limited-edition Free Press branded hat or tote.

Digital Subscription

One year of digital access for only $205*

  • Enjoy unlimited reading on winnipegfreepress.com
  • Read the E-Edition, our digital replica newspaper
  • Access News Break, our award-winning app
  • Play interactive puzzles

*First annual payment billed as $205.00 + GST for one year. This annual subscription will automatically renew at $233.00 + GST every 52 weeks (10% off the regular annual price of $259.35). Offer available to new and qualified returning subscribers only. Cancel any time.

To continue reading, please subscribe:

Add Free Press access to your Brandon Sun subscription for only an additional

$1 for the first 4 weeks*

  • Enjoy unlimited reading on winnipegfreepress.com
  • Read the E-Edition, our digital replica newspaper
  • Access News Break, our award-winning app
  • Play interactive puzzles
Start now

*Your next Brandon Sun subscription payment will increase by $1.00 and you will be charged $17.95 plus GST for four weeks. After four weeks, your payment will increase to $24.95 plus GST every four weeks.

HALIFAX – Canada’s wine sector is worth more than $10 billion a year and the industry says a few tweaks — like scrapping domestic trade barriers — could add billions of dollars more to the national economy.

A new report from Deloitte, commissioned by the Wine Growers of Canada, says the key is getting Canadians to buy at least 51 per cent of their wine from homegrown producers over the next 15 years. That would increase the value of the wine sector from the current $10.1 billion to $13.7 billion, including from spinoff industries like shipping and tourism. The sector has plateaued at about 40 per cent domestic market penetration for almost two decades.

“We’re not going to be reaching 51 per cent by increasing wine sales across Canada. We’re going to be increasing to 51 per cent by displacing imports over time,” Dan Paszkowski, president of the Wine Growers of Canada, said in an interview.

Workers pick grapes at the Luckett Vineyards in Wallbrook, N.S., on Thursday, Oct. 19, 2017. THE CANADIAN PRESS/Andrew Vaughan
Workers pick grapes at the Luckett Vineyards in Wallbrook, N.S., on Thursday, Oct. 19, 2017. THE CANADIAN PRESS/Andrew Vaughan

The report says homegrown products make up more than half of sales in each of the leading wine countries in the world, including France where consumers opt for a domestic bottle 83 per cent of the time.

One important change the Canadian industry wants to see is consumers buying wine directly from out-of-province wineries for their own personal use. Paszkowski says retail stores can’t stock every product, and they typically want large volumes of wine, which doesn’t work for small- and mid-size operators.

“We’re probably the only retail sector in the country that has to say no to a consumer when they come and visit our winery and say, ‘Can you ship this to my home province?’” Paszkowski said. “We can’t legally do it yet. And that really is hurtful to the growth of the industry because we have four million tourists come and visit our wineries every year.”

In the U.S., the report says direct-to-consumer shipping is allowed in 48 states, giving producers a near-national market that helped grow the value of the California wine sector to about US$67.5 billion in 2024.

Carl Sparkes, owner of Nova Scotia’s Devonian Coast Wineries, which produces more than 150,000 cases a year, says he once shipped a case of his Jost Vineyards’ Big Friggin’ Red to every premier. The wine, created for Canada’s 150th birthday in 2017, came with a letter reminding them that the Constitution includes a clause allowing for the free movement of agricultural products across provincial boundaries.

“As a principle, any Canadian should be able to order directly,” Sparkes said in an interview. “I think they order so much on Amazon today from around the world, yet they can’t order a bottle of wine, an agricultural product, from next door. It’s just wrong.”

The federal government has largely removed its restrictions on alcohol trade between provinces, but provincial constraints still exist. The report says just three provinces — British Columbia, Manitoba and Nova Scotia — allow unfettered direct-to-consumer wine shipments from other jurisdictions.

Others have one-off deals or have started the process of loosening restrictions since the U.S. launched its trade war last year. Alberta has an agreement with B.C. that allows direct-to-consumer sales on both sides of the boundary, says the report, while Ontario signed a memorandum of understanding on the practice with Nova Scotia this spring. New Brunswick and P.E.I have both introduced legislation that is still pending. Saskatchewan allows direct out-of-province sales but requires a permit.

Last year, 10 provinces and territories signed a memorandum of understanding committing to explore a direct-to-consumer system. Paszkowski says he expects an announcement soon on creating a fully-integrated market that will tackle the harmonization of matters such as shipping, compliance and tax collection.

While every province produces some wine, the report says the Canadian industry is dominated by four regional clusters: the Okanagan Valley in British Columbia, the Niagara region in Ontario, Quebec’s Eastern Townships and the Annapolis Valley in Nova Scotia.

Each bottle of 100 per cent Canadian wine generates about $89.99 for the economy, says the report, compared to $15.73 for each imported bottle. The benefits extend beyond the country’s more than 600 wineries, helping to support the culture, tourism and transportation sectors.

Wine growers also want to tackle what they say is an uncompetitive federal excise tax structure that contributes to foreign wine often being cheaper than a local bottle.

The excise tax for Canadian wine containing more than seven per cent alcohol is 74.5 cents per litre. In the U.S. the excise tax works out to about 39 cents per litre, says the report, while France’s tax is about six cents per litre. Paszkowski says a Canadian winery in the Niagara region can end up paying hundreds of thousands of dollars more in tax than a counterpart across the border

“That winery in the United States has a significant advantage to increase its scale, to decrease its costs, to become much more competitive at a faster rate than the Canadian wine industry is able to do,” said Paszkowski.

In 2022, Ottawa created the $166-million Wine Sector Support Program designed to help the industry adapt and respond to challenges. It was renewed in 2024 with an additional $177 million but is currently in its final year. The sector is pushing for another renewal and says it needs more long-term investment certainty.

“If we’re serious about growing the sector and keeping the investment here at home, we need stable, predictable policy that gives wineries the confidence to invest here,” said Sparkes. “We’re in a long-term business. What we plant today won’t produce for years. And that level of predictability is critical.”

This report by The Canadian Press was first published May 15, 2026.

Report Error Submit a Tip

More Stories

Three could prove an awkward crowd

Maureen Scurfield 4 minute read Yesterday at 2:00 AM CDT

DEAR MISS LONELYHEARTS: My girlfriend and I — two women in our late 20s — are finally getting married.

Previously, we were both living with guys and it didn’t ever work for us. She thinks marriage itself was not her problem, but that guys are basically not suited to “loving” in the special ways two women can love.

So, here I am getting ready to give marriage another go — but with her! She’s a woman who’s a wonderful chef, decorator and a mother of two from her previous marriage. The problem we have as partners? I don’t care for the domestic arts myself — but I’d still like to have a child of my own.

That brings up another issue. I also have a male friend who’d be happy to get me pregnant — an old pal of mine who is a bachelor and would like to be a father and continue being platonic friends with me. He’d also help support the child financially.

Botched execution revives death penalty debate

Arthur Chapman 5 minute read 2:00 AM CDT

The United States of America’s seemingly endless, often futile, search for the painless, bloodless method of executing prisoners continues. The latest horrifying chapter occurred in Tennessee on Sept. 30, when the state tried to kill convicted murderer Christa Pike by lethal injection.

It didn’t work. Pike survived two dosages of pentobarbital. She was rushed to a hospital where, according to her lawyer, she was receiving “lifesaving care”.

Tennessee governor Bill Lee has cancelled upcoming executions, but he isn’t moving away from capital punishment.

Lee said, as quoted in the New York Times: “The people of Tennessee have determined that capital punishment is the appropriate sentence for the most heinous of crimes. The people of Tennessee expect those sentences to be carried out in a manner that’s not only legal and constitutional but effective, and that didn’t happen.”

Canadian wineries say scrapping provincial trade barriers would add billions to GDP

Devin Stevens, The Canadian Press 6 minute read Preview

Canadian wineries say scrapping provincial trade barriers would add billions to GDP

Devin Stevens, The Canadian Press 6 minute read Friday, May. 15, 2026

HALIFAX - Canada’s wine sector is worth more than $10 billion a year and the industry says a few tweaks — like scrapping domestic trade barriers — could add billions of dollars more to the national economy.

A new report from Deloitte, commissioned by the Wine Growers of Canada, says the key is getting Canadians to buy at least 51 per cent of their wine from homegrown producers over the next 15 years. That would increase the value of the wine sector from the current $10.1 billion to $13.7 billion, including from spinoff industries like shipping and tourism. The sector has plateaued at about 40 per cent domestic market penetration for almost two decades.

“We're not going to be reaching 51 per cent by increasing wine sales across Canada. We're going to be increasing to 51 per cent by displacing imports over time,” Dan Paszkowski, president of the Wine Growers of Canada, said in an interview.

The report says homegrown products make up more than half of sales in each of the leading wine countries in the world, including France where consumers opt for a domestic bottle 83 per cent of the time.

Read
Friday, May. 15, 2026

Scare up some social reconnection this fall

Maureen Scurfield 4 minute read 2:00 AM CDT

DEAR MISS LONELYHEARTS: I’m an emotional mess. My lesbian girlfriend and I broke up in August, and now I hold the lease on the apartment we shared. It’s a great big old place with two spacious balconies.

I just got new roommates — two younger friends who really love it here — but secretly I’m still feeling lonely. Every minute of living here reminds me of my girlfriend because we decorated the place together and hung out on the balconies to sunbathe in the summer.

Would it help to move out of my beloved old block with its memory triggers? Maybe, but what if I died of loneliness in a new place? I need people around me, and no one but my ex-girlfriend has really been the right person. Please help. I feel sick about this.

— Love-Nest Sadness, Winnipeg

Estate of woman who died from local anesthetic injected into blood vessel sues Morden dentist, his business, clinic

Erik Pindera 4 minute read Preview

Estate of woman who died from local anesthetic injected into blood vessel sues Morden dentist, his business, clinic

Erik Pindera 4 minute read Yesterday at 4:08 PM CDT

The estate of a 23-year-old woman who died after receiving a local anesthetic during a wisdom tooth extraction at a Morden dental clinic has filed a lawsuit over her death.

Virginia Blatz never returned home after she went to Boundary Trails Dental Centre to have her wisdom teeth removed on Nov. 27, 2024. An autopsy later confirmed she died from local anesthetic systemic toxicity caused by an inadvertent injection into a blood vessel, her family has previously said.

Her father, Dulaney Blatz, filed a lawsuit in the Court of King’s Bench on behalf of her estate late last month, naming Ronald David Janz — the dentist who performed the procedure — his dental corporation and the dental corporation that operates the clinic as defendants.

None of the defendants have filed statements of defence in response to the claim, which has not yet been heard in court.

Read
Yesterday at 4:08 PM CDT

Sidney Crosby sings praises of Jets' Bjorck, summer training partner Barron

Ken Wiebe 6 minute read Preview

Sidney Crosby sings praises of Jets' Bjorck, summer training partner Barron

Ken Wiebe 6 minute read Yesterday at 5:06 PM CDT

PITTSBURGH — It wasn’t that long ago when the shoe was on the other foot for Sidney Crosby.

Read
Yesterday at 5:06 PM CDT